SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event reported: May 15, 2002
LMI AEROSPACE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Missouri
(State or Other Jurisdiction of Incorporation)
0-24293 43-1309065
(Commission File Number) (I.R.S. Employer Identification No.)
3600 Mueller Road, St. Charles, Missouri 63302-0900
(Address of Principal Executive Offices) (Zip Code)
(636) 946-6525
(Registrant's Telephone Number, Including Area Code)
_____________________
Item 5. Other Events.
On May 15, 2002, LMI Aerospace, Inc. issued a press release relating to its
financial performance during the First Quarter of 2002. The text of the
announcement is attached hereto as Exhibit 99.1.
Exhibit Number Description
99.1 Text of Press Release, dated May 15, 2002,
issued by LMI Aerospace, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 16, 2002
LMI AEROSPACE, INC.
By: /s/ Lawrence E. Dickinson
---------------------------------------
Lawrence E. Dickinson
Chief Financial Officer and Secretary
EXHIBIT INDEX
Exhibit Description
99.1 Text of Press Release, dated May 15, 2002, issued by
LMI Aerospace, Inc.
Exhibit 99.1
LMI Aerospace, Inc.
Post Office Box 900
St. Charles, Missouri 63302
Contact:
Ed Dickinson, Chief Financial Officer, 636/916-2150
FOR IMMEDIATE RELEASE
LMI AEROSPACE REPORTS SALES INCREASE OF 11.9 PERCENT
IN FIRST QUARTER OF 2002
Tempco sales offset decline in aerospace revenues
ST. LOUIS, May 15, 2002 - LMI Aerospace, Inc. (Nasdaq:LMIA) announced today
that sales in the first quarter of 2002 were $17.9 million, an increase of 11.9
percent from the first quarter of 2001. The acquisition of Tempco Engineering in
April 2001 contributed to the increased sales.
For the quarter ended March 31, 2002, sales were $17.9 million vs. $16.0
million in the quarter ended March 31, 2001. Net income was $464,000 or $0.06
per diluted share in the first quarter of 2002, down from $882,000 or $0.11 per
diluted share in the same quarter of 2001. In accordance with SFAS 142, net
income for the first quarter of 2002 did not include goodwill amortization.
"This is our sixth consecutive profitable quarter, despite difficult market
conditions," said Ronald S. Saks, President and Chief Executive Officer of LMI
Aerospace. "The acquisition of Tempco added $5.8 million in sales for the
quarter; however, our aerospace sales declined by $3.9 million as a result of
lower production rates and inventory adjustments at Boeing, Learjet and
Gulfstream."
Gross profit for the first quarter of 2002 was $3.8 million, or 21.3
percent of net sales, compared to $3.7 million and 23.1 percent in the first
quarter of 2001. The increase in gross margin resulted primarily from the
addition of Tempco's results in the quarter. Gross profit was adversely affected
by the increase in aerospace finished goods inventory resulting from customers'
deferral of shipments and inventory adjustments, as well as the costs associated
with orders for new components received from Lockheed.
Selling, general, and administrative expenses in the quarter were $450,000
higher than the prior year, due primarily to the inclusion of expenses at
Tempco.
Backlog at March 31, 2002, was approximately $57.8 million, up from $43.7
million at the end of the first quarter of 2001. Long-term debt, net of cash, at
March 31, 2002, was $11.7 million. Cash did decline during the quarter as
accounts receivable and inventories grew. However, the Company still has
available its $7.0 million revolving credit agreement.
"Reaffirming our prior comments, recent events have caused several of our
major commercial aerospace customers to adjust delivery schedules and reduce
production rates, while our military and semiconductor customers are
accelerating some schedules," Saks said. "We continue to expect 2002 sales will
be in the range of $78 million to $82 million and gross margins at 20 percent to
23 percent. The portion of LMI sales attributable to large commercial aircraft
fell to 37 percent of total sales in the first quarter of 2002, and we expect
military sales will exceed commercial aircraft sales by the third quarter of
2002."
A webcast to provide an updated outlook and estimates for 2002 will be
available on our webpage at www.lmiaerospace.com at 9:00 a.m. CST on May 24,
2002.
LMI Aerospace, Inc. is a leading supplier of quality components to the
aerospace and technology industries. The Company operates eight manufacturing
facilities that fabricate, finish and integrate close tolerance aluminum and
specialty alloy components for commercial, corporate, regional and military
aircraft, and for laser equipment used in the semiconductor and medical
industries. Its products include leading edge wing slats and lens assemblies;
cockpit window frame assemblies; fuselage skins and supports; passenger and
cargo door frames and supports; and excimer laser components.
This press release includes forward-looking statements related to LMI
Aerospace's outlook for 2002 and future periods, which are based on current
management expectations. Such forward-looking statements are subject to various
risks and uncertainties, many of which are beyond the control of LMI Aerospace,
Inc. Actual results could differ materially from the forward-looking statements
as a result, among other things, of the factors detailed from time to time in
LMI Aerospace's filings with the Securities and Exchange Commission.
LMI Aerospace, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
For the Three Months Ended March 31
2002 2001
Net sales $ 17,908 $ 16,048
Cost of sales 14,102 12,345
---------------------------------------
Gross profit 3,806 3,703
Selling, general, and
administrative expenses 2,792 2,342
---------------------------------------
Income from operations 1,014 1,361
Interest expense (271) (4)
---------------------------------------
Income before income taxes 743 1,357
Provision for income taxes 279 475
---------------------------------------
Net income $ 464 $ 882
=======================================
Amounts per common share:
Net income per common share $0.06 $0.11
=======================================
Net income per common
share - assuming dilution $0.06 $0.11
=======================================
Weighted average common shares
outstanding 8,023,930 8,080,969
=======================================
Weighted average dilutive
stock options outstanding 123,053 11,593
=======================================
LMI Aerospace, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
March 31,
2002 December 31,
(unaudited) 2001
-----------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 2,693 $ 4,645
Investments 528 643
Trade accounts receivable, net 8,078 6,285
Inventories 23,630 23,045
Prepaid expenses 1,366 787
Deferred income taxes 886 886
-----------------------------------------
Total current assets 37,181 36,291
Property, plant, and equipment, net 23,514 24,014
Other assets 309 277
Goodwill, net 7,422 7,420
-----------------------------------------
$ 68,426 $ 68,002
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 4,552 $ 3,547
Accrued expenses 2,309 2,659
Current installments of long-term debt 2,312 2,334
-----------------------------------------
Total current liabilities 9,173 8,540
Long-term debt, less current installments 12,048 12,621
Deferred income taxes 1,191 1,192
-----------------------------------------
Total noncurrent liabilities 13,239 13,813
Stockholders' equity:
Common stock of $.02 par value; authorized 28,000,000
shares; issued 8,736,427 and 8,736,427 at December 31,
2001 and at March 31, 2002, respectively 175 175
Additional paid-in capital 26,171 26,171
Treasury Stock, at cost, 716,676 and 709,541 shares at
December 31, 2001 and March 31, 2002, respectively (3,366) (3,402)
Accumulated other comprehensive loss (115) -
-----------------------------------------
Retained earnings 23,150 22,705
-----------------------------------------
Total stockholders' equity 46,014 45,649
-----------------------------------------
$ 68,426 $ 68,002
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